Discover the digital payments landscape in Hong Kong 2019

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The Hong Kong payments market

Innovations in the payments industry are transforming the way consumers and businesses interact with brands today. To understand more about these changes and consumer expectations, Wirecard, in partnership with Tofugear, conducted a study on Hong Kong consumers’ use of digital payments. The study looks into popular payment methods used in Hong Kong, as well as the motivations and barriers towards using digital wallets.

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The most used payment methods in Hong Kong

  • Most used in-store payments methods are cash, Octopus cards, credit cards and digital wallets.
  • Credit cards are the main payment method for online transactions.
  • Nearly nine in 10 consumers used a digital wallet such as Alipay or PayMe in 2018.

Online payment methods in Hong Kong

  • When it comes to online transactions, preferred payment methods are credit cards and digital wallets.
  • Nearly 90% of millennials and Gen X consumers use credit cards for online transactions. Youngest Gen Z consumers often pay for online purchases with digital wallets, cash on delivery, or P2P transfers.

Consumer attitudes towards digital wallets

  • A typical Hong Kong consumer uses a digital wallet two to three times a week.
  • Around one in three consumers can be classified as heavy users, using digital wallets at least four to six times a week.
  • Millennials are most likely to use digital wallets, but adoption among Gen Z and Gen X consumers is also high.
  • Fast checkout is the number one reason respondents gave for choosing digital wallets over other payment methods.

Paying with digital wallets in Hong Kong

  • The main places where consumers pay through digital wallets are supermarkets (73%) and convenience stores (72%), while restaurants come in third place.
  • Local markets offer strong potential for digital payment penetration: only one in 10 consumers use digital wallets at such locations, as small merchants lack the infrastructure or are wary of supposed transaction fees.
  • Customer is king: for 90% of retailers the top reason to start accepting new digital wallets is to meet consumer demand.

Barriers impacting digital wallet usage

  • Millennials have the least concerns about using digital wallets.
  • Security and privacy concerns among top barriers of digital payments adoption.
  • Easing access to information, smoothing out payment processes, and offering more enticing incentives may increase digital wallet adoption rate.

The future of payments in Hong Kong

  • Consumers in Hong Kong are using a wide range of payment methods to suit different purposes and shopping journeys.
  • Key takeaway for retailers is that they need to ensure they offer enough options to give customers the highest level of convenience.
  • Our findings support this takeaway: for 91% of retailers surveyed, their top investment priority over the next two years is mobile POS.
  • Payment technologies that shoppers most want to engage with are self-checkout technologies and mobile POS.

Discover the digital payments landscape in Hong Kong 2019